Juniper Hotels Ltd, which runs hotels under the "Hyatt" brand, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 1800 crore through an initial public offering (IPO).
The company had filed preliminary IPO papers with Sebi on September 28, 2023.
The IPO with a face value of Rs 10 is entirely through a fresh issue of equity shares with no Offer for Sale (OFS) component.
The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares on a private placement for cash consideration aggregating up to Rs 350 crore ("Pre-IPO Placement"). If such placement is completed, the fresh issue size will be reduced.
The company proposes to use the net proceeds of Rs 1,500 crore towards repayment, prepayment, or redemption, in full or in part, of certain outstanding borrowings (including payment of the interest accrued thereon) availed by the company and its subsidiaries and for general corporate purposes.
Juniper Hotels is co-owned by Saraf Hotels Limited and Two Seas Holdings Limited, an affiliate of the prominent global hospitality entity, Hyatt Hotels Corporation. It functions as a luxury hotel development and ownership enterprise, and owns 20% of the total 1836 "Hyatt" affiliated hotel keys in India as of June 30, 2023, as outlined in the Horwath Report cited in the DRHP. The company manages a diverse portfolio consisting of seven hotels and serviced apartments.
Their hotels and serviced apartments span across various categories including luxury, upper upscale, and upscale, located across six strategic cities in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. Notably, the Grand Hyatt Mumbai Hotel and Residences holds the distinction of being the largest hotel in India.
For the fiscal year 2023, revenue from operations increased by 116.03% to Rs 666.85 crore against Rs 308.69 crore a year ago. Net loss narrowed to Rs 1.5 crore in fiscal 2023 over Rs 188.03 crore in fiscal 2022.
JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.